Another week of lockdown and it appears in our post last week that we were on to something. (Trust us, always ahead of the curve when it comes to the best car insurance news).
Pressure is growing on car insurance companies to start offering discounts to car insurance customers on their policies, as a result of reduced travel and fewer accidents happening on the road.
Just the day after we mooted this last week, Admiral announced that they were giving all their car insurance customers £25 as a result of the lower premium costs. Not much in the big scheme of things – we think it should be a lot more. But they are the first to offer such a discount and we wouldn’t be surprised if more follow in the coming weeks.
However, what we would really like to see is the intervention of either the insurance governing bodies, such as the ABA (Association of British Insurers), or action being taken by the government as a result of the 22 MPs who last week petitioned Chancellor Rishi Sunak to intervene and ensure savings were passed on to car insurance customers across the board.
Disappointingly, the ABA has said it is a matter for individual insurers, neatly sidestepping getting involved (a weak cop-out if you ask us). But, if claims are currently 50% down as reported, then a much bigger chunk than £25 from an average annual policy cost of around £800 is, in our opinion, needed.
In Admiral’s favour, they are also using some of the savings to put towards a Coronavirus support fund in Wales, where the company is based, and have promised another £80m to reduce prices going forward for those who need it most, such as younger drivers. But still, we feel that £25 is a drop in the ocean to households where every penny counts right now.
We wait with bated breath to see who and what follows next.
Until next week, stay safe.